Freddie Mac sued Bank of America Corp., UBS AG, JPMorgan Chase& Co. and a dozen other banks over alleged manipulation of theLondon interbank offered rate, saying the mortgage financiersuffered substantial losses as a result of the companies'conduct.

Government-owned Freddie Mac accuses the banks of actingcollectively to hold down the U.S. dollar Libor to “hide theirinstitutions' financial problems and boost their profits,”according to a complaint filed in federal court in Alexandria,Virginia.

“Defendants' fraudulent and collusive conduct caused USD LIBORto be published at rates that were false, dishonest, andartificially low,” Richard Leveridge, a lawyer for Freddie Mac,said in the complaint, which was made public yesterday.

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